JPMorgan to use AI instead of traditional proxy advisory firms for governance votes

JPMorgan is cutting off proxy advisory firms and doing it without delay. The bank’s asset-management arm confirmed on Wednesday it has ended all ties with external proxy advisers, effective immediately. The unit manages more than $7 trillion for clients and must vote shares at thousands of public companies every year. The decision lands while the proxy advisory business sits under pressure from the Trump administration, which ordered regulators to examine the sector. Starting this proxy season, JPMorgan will rely on an internal AI platform called Proxy IQ for voting at U.S. companies. A memo allegedly seen by The Wall Street Journal says the system will run the voting process and review information from over 3,000 annual shareholder meetings. The platform will also send vote recommendations directly to portfolio managers. Those jobs were traditionally handled by proxy advisers. JPMorgan replaces proxy advisers with Proxy IQ The memo says JPMorgan believes it...

https://www.cryptopolitan.com/jpmorgan-to-use-ai-for-proxy-advisory/